Correlation Between Ihlas Gazetecilik and GSD Holding

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Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and GSD Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ihlas Gazetecilik and GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Gazetecilik AS and GSD Holding AS, you can compare the effects of market volatilities on Ihlas Gazetecilik and GSD Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ihlas Gazetecilik with a short position of GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and GSD Holding.

Diversification Opportunities for Ihlas Gazetecilik and GSD Holding

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Ihlas and GSD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding AS and Ihlas Gazetecilik is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ihlas Gazetecilik AS are associated (or correlated) with GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and GSD Holding go up and down completely randomly.

Pair Corralation between Ihlas Gazetecilik and GSD Holding

Assuming the 90 days trading horizon Ihlas Gazetecilik AS is expected to generate 4.76 times more return on investment than GSD Holding. However, Ihlas Gazetecilik is 4.76 times more volatile than GSD Holding AS. It trades about 0.43 of its potential returns per unit of risk. GSD Holding AS is currently generating about 0.52 per unit of risk. If you would invest  113.00  in Ihlas Gazetecilik AS on September 3, 2024 and sell it today you would earn a total of  72.00  from holding Ihlas Gazetecilik AS or generate 63.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Ihlas Gazetecilik AS  vs.  GSD Holding AS

 Performance 
       Timeline  
Ihlas Gazetecilik 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ihlas Gazetecilik AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ihlas Gazetecilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.
GSD Holding AS 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in GSD Holding AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, GSD Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Ihlas Gazetecilik and GSD Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ihlas Gazetecilik and GSD Holding

The main advantage of trading using opposite Ihlas Gazetecilik and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik position performs unexpectedly, GSD Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GSD Holding will offset losses from the drop in GSD Holding's long position.
The idea behind Ihlas Gazetecilik AS and GSD Holding AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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